Netherlands-based renowned cryptocurrency exchange Bitonic added that it has been “forced” to usher in extra verification measures due to requirements from the country’s financial institution.
Within an official announcement, the exchange revealed that it’ll now ask users for extra information “such as the purpose with which you plan to get bitcoins and what the type of wallet you employ.”
It added that it must obtain proof from users they’re the “legitimate owner” of a bitcoin address by uploading a screenshot of their wallets, or by signing a message with the bitcoin address.
Bitonic called the new rules “ineffective and disproportionate,” revealed that it had asked multiple times that the central bank to remove the required guidelines.
The central bank, De Nederlandsche Bank, is claimed to be applying the Netherland’s Sanctions Act to cryptocurrency exchanges, seeking to make sure their users and transaction beneficiaries aren’t on a Dutch or European sanctions list.
“The Netherlands is presently the sole country within the European Union where this far-reaching measure is demanded,” the exchange added.
It further involved users to “formally object” to the central bank regarding extra requirements and therefore the collection of the information.